101 Insights
Podcast
New
Nov 3, 2023
Forward Guidance Podcast - Interview with Craig Manchuck
Listen to a recent interview with Craig Manchuck on the "Forward Guidance" podcast, where he discusses the end of the zero interest rate era.
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Video
Oct 17, 2023
October 11 Webinar Replay - Osterweis Strategic Income Fund Q3 Update
If you were unable to join our quarterly webinar, watch the replay to hear updates on the Osterweis Strategic Income Fund.
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Outlook
Oct 12, 2023
Fourth Quarter Equity Outlook
As the second quarter came to a close, the Fed’s elusive soft landing appeared to be within reach. However, inflation resurfaced during the third quarter, substantially complicating the near-term economic outlook.
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Outlook
Oct 11, 2023
Fourth Quarter Strategic Income Outlook
Like a watched pot that refuses to boil, the much-anticipated recession of 2023 has yet to materialize. In our latest Strategic Income outlook, we examine the reasons and discuss what might finally cause the temperature to rise.
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Video and News
Sep 29, 2023
Osterweis Sustainable Credit Funds Closing
The Osterweis Short Duration and Sustainable Credit Funds are closed to new investments and are liquidating on December 15, 2023. For additional information, please read the prospectus update.
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Blog
Sep 19, 2023
Catching the Wave: Why Secular Growth Matters
In our view, the specific market dynamics that influence a company's sales growth prospects have a greater impact on equity returns than the overall direction of the economy.
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Blog
Sep 7, 2023
TheStreet: Money manager says you should consider these 3 small-cap growth stocks
Bryan Wong, Portfolio Manager for the Osterweis Emerging Opportunity Fund (OSTGX), recently spoke to TheStreet about his team's investment philosophy, why they like small-cap growth stocks, and what industries he feels are the most attractive in the small-cap growth universe.
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Blog
Aug 31, 2023
Artificial Intelligence: A Seismic Secular Growth Opportunity
Artificial intelligence (AI) has been top-of-mind for investors for much of 2023, fueling a strong rally in the S&P 500. While it may take time for AI to have a similar impact on small cap stocks, we share the market’s enthusiasm and believe AI has the potential to become one of the most disruptive secular growth trends ever.
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Video
Aug 11, 2023
Bloomberg TV: John Sheehan Interview
Watch Bloomberg TV's interview with John Sheehan, Portfolio Manager for the total return fixed income strategy, who discusses the U.S. downgrade related to the Treasury market and its effects on the corporate credit markets. John's segment begins at 13:40.
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Podcast
Aug 4, 2023
Deconstructing Alpha - Interview with Carl Kaufman: Why Income, Why Now?
Listen to a recent interview with Carl Kaufman on the "Deconstructing Alpha" podcast, where he discusses the inverted yield curve and the current bond market.
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Outlook
Jul 18, 2023
Third Quarter Equity Outlook
The S&P 500 has generated double digit returns so far in 2023, but the gains have been narrowly focused. Heading into the second half, we will be watching to see whether the rally broadens or the market capitulates.
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Outlook
Jul 18, 2023
Third Quarter Strategic Income Outlook
Despite persistent inflation and elevated short-term interest rates, the economy appears to be holding up well, and we believe the Fed may deliver the “soft landing” it has been trying to engineer.
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Outlook
Jul 14, 2023
Third Quarter Total Return Outlook
The economy has held up remarkably well despite the Fed’s tightening program, but with two more hikes likely in 2023, the risk of a slowdown remains elevated.
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Blog
Jul 13, 2023
Focus on Dividend Growth, Not Dividend Yield
Dividends have historically played an important role in shareholder returns. In our view, companies that pay growing cash dividends also tend to reinvest in themselves, which can drive growth in cash flow and provide attractive returns with less volatility over time.
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Video
Jun 6, 2023
Replay - Investment Grade Fixed Income Town Hall
If you were unable to join the Total Return team for their recent town hall webinar, you can watch a replay to hear the team answer questions about a range of fixed income topics, including the markets, Fed policy, and the economy.
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Blog
May 30, 2023
The Risk of Playing It Safe
Investors have been loading up on T-bills and money market funds this year, but according to our Total Return team, that is not a sustainable strategy as it exposes investors to both reinvestment risk and inflation while creating an asset/liability mismatch.
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Blog
May 16, 2023
Osterweis Strategic Income Fund Featured in Kiplinger
Kiplinger recently highlighted the Osterweis Strategic Income Fund and portfolio manager Carl Kaufman in an article discussing the most attractive opportunities for high yields in today's market.
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Commentary
May 12, 2023
2023 Will Be a Year to Remember. But for What?
Unexpected tremors in the banking system roiled markets during the first quarter, further complicating the economic outlook. The good news is that the recent volatility has created a buying opportunity, with many bonds in our market trading at historically attractive valuations.
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News
Apr 25, 2023
Mutual Fund Observer: Osterweis Strategic Income Fund Profile
Mutual Fund Observer (MFO) recently published a profile on the Osterweis Strategic Income Fund. The profile highlights why MFO believes the fund "is one of the two or three best strategic income funds available to investors."
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Outlook
Apr 24, 2023
Second Quarter Equity Outlook
Despite recent market volatility, particularly in the banking sector, we believe the economy is currently experiencing several significant secular growth trends that will create strong tailwinds for companies that are well-positioned to capitalize.
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Outlook
Apr 17, 2023
Second Quarter Total Return Outlook
Thanks to the recent banking crisis, the Fed’s “dual mandate” has taken on a new meaning. The increased economic uncertainty during the first quarter drove investors towards safer assets, boosting investment grade bonds.
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Outlook
Apr 13, 2023
Second Quarter Strategic Income Outlook
2023 has already been an eventful year, featuring a banking crisis and more Fed rate hikes. In our view, this is not a “set it and forget it” type of market – investors need to stay vigilant.
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Blog
Apr 4, 2023
Sector Rotation: The Cornerstone of Our Investment Grade Strategy
Volatility can be challenging but it also creates opportunities. In our view, rotating across sectors within the investment grade market is the most effective way to take advantage of price fluctuations and generate alpha.
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Blog
Mar 24, 2023
Osterweis Strategic Income Fund Named Best Multi-Sector Income Fund (3-year category) in the 2023 Refinitiv Lipper Fund Awards
Osterweis Capital Management's Strategic Income Fund (OSTIX) has been named a 2023 Refinitiv Lipper U.S. Fund Awards Winner as the Best Multi-Sector Income Fund Over Three Years.
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Blog
Mar 14, 2023
Sustainable Investing: Opportunistically Managing Risk
Robust risk management is essential for fixed income investors. In his latest commentary, Marcus Moore explains why our sustainable investing team considers ESG factors as material business risks, similar to the traditional risks they also analyze.
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Blog
Mar 10, 2023
Bloomberg: "A Top Bond Manager Says Fed Would Be Wrong to Boost Hike Pace"
In a recent interview with Bloomberg News, Eddy Vataru, lead portfolio manager for the Osterweis Total Return Fund, argues that the Fed should not accelerate the pace of its tightening program, as it would signal the central bank is losing control in its fight against inflation.
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Blog
Feb 24, 2023
Small Cap Growth Investing Across Market Cycles
Markets are unpredictable, which is one of many reasons it is difficult to consistently deliver alpha over long periods. In their latest commentary, our small cap growth team explains why their approach to managing the trade-off between risk and reward gives them the opportunity to outperform across market cycles.
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Blog
Feb 15, 2023
Unexpected Risks and Opportunities from the Inverted Yield Curve
Many investors have attempted to capitalize on the inverted yield curve by purchasing long-term Treasuries (assuming continued declines at the long end will cause their bonds to appreciate). In his latest commentary, Venk Reddy, CIO of our Sustainable Credit Strategies, explains why he feels this approach is materially riskier than investing in short duration fixed income.
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Video
Jan 30, 2023
January 26 Webinar Replay - Osterweis Fund and Osterweis Growth & Income Fund Q4 Update
If you were unable to join our quarterly webinar, watch the replay to hear updates on the Osterweis Fund and Osterweis Growth & Income Fund.
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Blog
Jan 27, 2023
The Elephant in the Room
The current debt ceiling debate in Congress is a great reminder that investors should always prepare for the unexpected and invest in companies that are durable enough to withstand a range of economic scenarios.
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Podcast
Jan 27, 2023
Orion's Weighing Machine Podcast: Interview with Venk Reddy
Venk Reddy was featured in a recent edition of Orion’s "The Weighing Machine" podcast. During this interesting podcast, Venk discussed what sustainable investing means, how sustainable credit differs from green bonds, and what catalysts could make sustainable investments a hit.
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Video
Jan 20, 2023
January 5 Webinar Replay - Welcome Back, Income.
In his latest webinar, Venk Reddy, CIO of our Sustainable Credit Strategies, explains that the Fed’s battle against inflation is likely to last longer than the market anticipates, which should keep rates higher over the near-to-medium term, creating attractive opportunities for investors seeking income.
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Outlook
Jan 12, 2023
First Quarter Strategic Income Outlook
2022 was a difficult year for bond investors, but the combination of high inflation and tighter Fed policy should keep yields elevated, creating materially stronger fixed income returns in the new year.
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Outlook
Jan 11, 2023
First Quarter Equity Outlook
In 2022, inflation and interest rates both rose substantially, creating the near-term potential for a recession. In the new year, we think investors should focus on companies that are well-positioned for an economic slowdown as well as continued price increases.
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Blog
Jan 10, 2023
Things Are Getting Sticky. Prices Always Have Been.
Although inflation appears to have peaked, historical data suggests that prices are unlikely to reverse themselves, which could lead to an extended period of wage inflation. For fixed income investors, the silver lining is that the Fed may be reluctant to lower rates anytime soon, which should translate into higher bond yields.
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Outlook
Jan 5, 2023
First Quarter Total Return Outlook
2022 was a rough year for fixed income, but we anticipate better days ahead as the Fed will likely keep rates elevated in its ongoing battle against inflation.
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Video
Dec 21, 2022
Replay - Taking the Long View: Why Inflation Today Could Boost Bonds Tomorrow
If you were unable to join the Total Return team for their recent webinar, you can watch a replay to hear why they think today's inflationary headwinds should become tailwinds for fixed income investors, as yields are likely to remain elevated across the bond market.
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Blog
Dec 19, 2022
Quiet Quitting? Quiet Firing? More Like Quiet Retiring
Structurally tight labor markets are providing support for tighter monetary policy, but the Fed may be fighting an uphill battle. A post-pandemic labor shortage is one of the biggest challenges in the struggle against persistent inflation, made worse by baby boomers retiring, as noted by Fed Chair Jay Powell in his remarks on November 30, 2022. If this retirement ripple becomes a wave, inflation may stay higher for longer, driving up yields and creating the most favorable fixed income investment environment in decades.
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Blog
Nov 18, 2022
Back to the Future: Traveling in Time to Navigate Today’s Markets
We believe the market is currently undergoing a substantial paradigm shift that could impact bond investors for years to come. The end result: We may be entering a golden age of income, reminiscent of a period in the distant past when investors focused on fundamentals and clipped coupons rather than prioritizing short-term price appreciation.
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Video
Nov 3, 2022
Replay - ESG Isn't What You Think It Is
Venk Reddy, CIO of Sustainable Credit, and Marcus Moore, Assistant Portfolio Manager, provided a behind-the-scenes look at how sustainability factors impact creditworthiness and how you, as a fixed income investor, can make a difference with your capital.
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Video
Nov 1, 2022
Venk Reddy: Is ESG a strategy?
In this video, Venk Reddy, CIO of Sustainable Credit, explains that ESG is not a strategy, but rather it is a framework for evaluating risks that have historically been ignored by traditional fundamental credit investors.
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Video
Oct 27, 2022
Venk Reddy: How do you engage with management teams?
In this video, Venk Reddy, CIO of Sustainable Credit, explains the differences between how ESG fixed income managers and equity managers engage with their portfolio companies.
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Outlook
Oct 18, 2022
Fourth Quarter Total Return Outlook
The Fed remains singularly focused on containing inflation but has made little headway so far. We anticipate the tightening cycle will continue, which will keep downward pressure on risk assets.
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Video
Oct 10, 2022
Venk Reddy: How do you look at ESG in Fixed Income?
In this video, Venk Reddy, CIO of Sustainable Credit, explains how the team views ESG factors as risks, similar to other business risks, and that considering them is key to delivering a portfolio that meets their fundamental mandate.
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News
Oct 7, 2022
Osterweis to Include ESG-Integrated Fixed Income Strategies in Product Suite
Osterweis Capital Management announced today that its fund family has expanded to include two sustainable bond funds. The Osterweis Short Duration Credit Fund (ZEOIX) and the Osterweis Sustainable Credit Fund (ZSRIX) will continue to be managed by portfolio managers Venk Reddy and Marcus Moore.
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Blog
Sep 20, 2022
Dividend Growth Stocks and High Yield Bonds: An Innovative Approach to Generating Investment Income
Generating investment income is challenging, especially in the low-yield environment we have been living with for the past decade. We believe that combining dividend growth stocks with an allocation to shorter-duration non-investment grade bonds is an effective solution.
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Blog
Sep 7, 2022
20 Years of Common Sense Investing: Our Top 5 Principles
We have always believed that common sense is the key to successful investing. Since launching our Strategic Income Fund two decades ago, our straightforward, flexible approach has allowed us to navigate all types of markets and consistently deliver strong risk-adjusted returns over time.
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Podcast
Aug 30, 2022
Money Life with Chuck Jaffe: Interview with Eddy Vataru August 2022
Listen to Eddy’s August 25, 2022 interview on the “Money Life with Chuck Jaffe” podcast to hear his thoughts on the Fed's response to inflation and if there is likely to be a soft landing.
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Blog
Aug 18, 2022
Navigating Short-Term Dislocation Through Long-Term Thinking
Thanks to general concerns about shorter-term bonds and fears of a looming recession, many shorter duration securities are currently yielding more than longer duration securities. According to Venk Reddy, CIO for our Sustainable Credit Strategies, to properly capitalize on this unusual situation, investors must distinguish between strong credits that are discounted due to decreased market sentiment versus those with deteriorating fundamentals.
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Blog
Aug 2, 2022
The Fed Has a Third Mandate, and the Market Has a New Imaginary Friend
Much has been made of the market’s relationship with the Fed in recent months, but what has only been mentioned in passing is the impact on market psychology of past Fed actions. When paired with a Fed that is hyperaware of those market psychologies, we find ourselves seeing an interesting dynamic develop today as the Fed battles inflation on one hand and the risk of a recession on the other.
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Blog
Jul 20, 2022
Fundamentally Challenged or Fundamentally Cheap? Bargain Hunting in a Down Market
2022 has been a rough year for fixed income investors (among others), as most bonds have experienced double digit losses. Perhaps the only silver lining to this situation is that many securities have declined in price even though the issuer’s credit quality has not materially changed, which has created some excellent buying opportunities for active managers like us.
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Blog
Jul 15, 2022
Short-Term Investing with a Long-Term Perspective
Ironically, the short-term bond market works best for patient investors with longer-term horizons, as many participants have high liquidity needs and will sell quality bonds at a discount in order to raise cash quickly. This creates buying opportunities for investors like us, as we are always happy to hold a strong credit to maturity, especially if we can purchase it below its fair market value.
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Blog
Jul 12, 2022
Inflation vs. Stagflation: A Distinction Without a Difference?
The stagflation scenario predicted as imminent by some economists never quite came to pass… at least not yet. Meanwhile, the current state of inflation appears to be the results of a series of seemingly one-off scenarios. However, if one looks closer, patterns begin to emerge.
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News
May 17, 2022
MarketWatch: What’s Next for the Stock Market as Investors Grapple with Fed Near ‘Peak Hawkishness’
The portfolio managers for the Osterweis Total Return Fund (OSTRX) were recently quoted in a MarketWatch article discussing the Fed’s current policy predicament and potential strategies for managing inflation.
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Blog
May 17, 2022
Kiplinger: The Osterweis Strategic Income Fund is Discussed in this Field Guide to Income Investment Opportunities
This Kiplinger article quotes Carl Kaufman, who describes the Osterweis Strategic Income Fund's (OSTIX) tendency to perform well in down markets.
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News
Apr 19, 2022
Zeo Team Joins Osterweis
We are excited to announce that on May 1, 2022, Zeo Capital Advisors' six employees became part of the Osterweis team. Their additional expertise allows us to expand our fixed income strategies and product suite into ESG-focused short duration and sustainable high yield.
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News
Apr 14, 2022
AdvisorIntelligence Annual Fund Review
Read AdvisorIntelligence's annual review of the Osterweis Strategic Income Fund, where it continues to rate the fund as “Recommended” in its Absolute-Return-Oriented bond fund category.
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News
Mar 25, 2022
Morningstar: Bond Investors Facing Worst Losses in Years
Eddy Vataru, Lead Portfolio Manager for the Total Return Fund, was quoted in a Morningstar.com article about how rates are affecting the bond market.
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Blog
Mar 14, 2022
Strategic Income Fund: Built to Withstand Challenging Markets
Bonds have started slowly in 2022 due to persistent inflation, a looming Fed tightening cycle, and the Russia/Ukraine conflict. We believe the Osterweis Strategic Income Fund is well-positioned to address these challenges, as its flexible mandate and defensive approach help to protect against rising rates and market volatility.
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Blog
Mar 8, 2022
Market Perspectives: Our Latest Thoughts on Ukraine
The Ukraine conflict has escalated rapidly, creating a massive humanitarian crisis and increasing volatility across financial markets. In this piece we review the major economic implications of the war and discuss the steps we are taking to manage the impact on portfolios.
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Podcast
Mar 1, 2022
Money Life with Chuck Jaffe: Interview with Eddy Vataru February 2022
Listen to Eddy’s February 23, 2022 interview on the “Money Life with Chuck Jaffe” podcast to hear his thoughts on inflation and potential fed fund hikes.
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Blog
Jan 5, 2022
In Search of Upside: Finding Opportunities in Small Cap Growth
Small cap growth stocks lagged for most of 2021 as the market simultaneously dealt with the pandemic, inflation, and tightening Fed policy. Given these challenges, we have been focusing on high quality companies trading at attractive valuations, and we have also been looking at non-technology businesses that are embracing digitization.
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Podcast
Oct 20, 2021
Orion's Weighing Machine Podcast: Interview with Carl Kaufman
Carl Kaufman was featured a recent edition of Orion’s "The Weighing Machine" podcast. During the podcast, Carl discussed how he got into the business and the strategy behind the Strategic Income Fund.
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Blog
Sep 30, 2021
Is the Fed Ignoring Its Own Inflation Data?
The Fed continues to assert that elevated inflation is largely due to “transitory factors,” but the Underlying Inflation Gauge, which is published by their own New York branch, tells a different story. To understand where inflation is heading, we advise investors to pay close attention to UIG data, even it if the Fed doesn’t.
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News
Jun 30, 2021
Press Release: Fund Name Change and Management Fee Reductions
Read our latest press release for details on the change of the Strategic Investment Fund's name to Growth & Income Fund, as well as management fee reductions.
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Blog
Jun 29, 2021
Investment Grade Credit Midyear Report: A Challenging First Half, but Opportunities Remain
Rising interest rates generated negative year-to-date returns for investment grade bonds in 2021, but the second half of the year looks more promising. We believe the combination of reduced supply and strong demand will create attractive opportunities, and we are constructive on corporate credit and asset backed securities (ABS).
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Podcast
Jun 25, 2021
Deconstructing Alpha: Interview with Carl Kaufman
Listen to a recent interview with Carl Kaufman on the "Deconstructing Alpha" podcast, where they discuss the history and active management of the Strategic Income Fund, as well as investing in the current low interest rate environment.
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Podcast
Jun 23, 2021
Money Life with Chuck Jaffe: Interview with Eddy Vataru June 2021
Listen to Eddy’s interview on the “Money Life with Chuck Jaffe” podcast to hear his thoughts on inflation in the current market environment and how it's different from the financial crisis a decade ago.
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Blog
Jun 18, 2021
Why Secular Growth Matters, and How We Find It
Growth stocks have lagged cyclicals so far in 2021, but we remain steadfast in our belief that secular growth is the key to generating long-term returns. In this piece, we discuss how we find attractive opportunities in the small cap universe.
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News
Jun 11, 2021
MarketWatch: Is inflation eating up all the interest you’re earning on 10-year Treasury notes?
In this MarketWatch article, Eddy Vataru, CIO-Total Return, discusses his thoughts on inflation.
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Blog
Jun 3, 2021
Inflation in 2021: Why It Could Be Different This Time
Inflation has been top of mind for investors throughout 2021. The question going forward is whether recent price increases will be transitory or persistent. In our view, the risk of sustained inflation is higher now than at any point in recent memory.
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Blog
Mar 31, 2021
Price Makers, Share Gainers, and Compounding Machines: Three Quality Business Models
Defining a quality business is easier said than done. We have found that the highest quality businesses either consistently exercise pricing power while maintaining market share or consistently grow market share by undercutting incumbents. A choice few companies we call “compounding machines” can both raise price and increase market share.
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Blog
Mar 11, 2021
In a Speculative Market, Focus on Fundamentals
As investors have become more optimistic about the U.S. economy, speculative activity has become a progressively bigger driver of returns, particularly in small and micro-cap stocks. While we always welcome an equity rally, in volatile environments like this, we believe it is more critical than ever to focus on fundamentals and invest only in the highest quality firms.
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Blog
Jan 6, 2021
2021 IG Outlook: Despite Headwinds, a Path Forward Exists
As the new year begins, the investment grade (IG) market faces multiple challenges, including a recovering economy, low yields, tight spreads, and record high duration. At the same time, market technicals remain favorable, fundamentals are improving, and there are attractive sectors in the index. Overall, we are modestly bullish about 2021 and feel there are compelling opportunities for those who know where to look.
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Blog
Dec 28, 2020
Back to (the New) Normal: Five Secular Growth Trends for 2021
The coronavirus pandemic is a once-in-a-lifetime event that transformed society and the economy almost overnight. We believe some of the most significant changes are likely here to stay, and we are focusing our investments on the secular growth trends we expect to strengthen as life returns to normal.
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Blog
Dec 7, 2020
The Case for Waste: Finding Growth in Garbage
Although investors don’t normally think about trash when they’re looking for growth stocks, we believe the solid waste industry is well-positioned to outperform. In our view, the combination of high barriers to entry, stable demand, and opportunities for consolidation should provide reliable revenue growth for the foreseeable future.
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Blog
Oct 6, 2020
Osterweis Total Return Fund Ranked #1 in Nontraditional Bond Category by US News & World Report
The Osterweis Total Return Fund was ranked against 311 funds in the nontraditional bond category, based on an equal weighting of the overall ratings provided by US News and World Report data sources as of August 31, 2020.
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Blog
Sep 23, 2020
Is the Bond Market as Disconnected from Reality as the Stock Market?
Bob Veres of Insider’s Forum recently moderated a panel discussion featuring Eddy Vataru that explored the disconnect between the strength of the bond market and the weakness in the economy. Eddy explained that the situation is largely due to the Fed's monumental stimulus program, and he suggested strategies for investing in a low rate environment.
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Blog
Sep 1, 2020
Investment Grade Credit Update: An Exceptionally Eventful Year That Has Created Opportunities
The investment grade fixed income market has been unusually active in 2020. Initial concerns about Covid-19 triggered a sharp selloff, but sentiment abruptly reversed when the Fed announced plans to purchase corporate bonds. Spreads have nearly returned to their pre-pandemic levels, but not all sectors have recovered equally, creating interesting opportunities for savvy investors.
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Blog
Aug 14, 2020
A Bright Future for Renewables: Lower Costs and Rising Demand
Following decades of investment and cost reduction, electricity from renewable energy should be cheaper than most existing fossil- and nuclear-fueled electricity within the next three-to-five years. We believe selectively investing in operators with scale and cost advantages in this sector should be rewarding given the increasing demand for clean energy.
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Blog
Jul 8, 2020
Steepening the (Adoption) Curve: Covid-19 and Digital Transformation
In the era of social distancing, technology has become even more integrated into our personal and professional lives. We believe this trend will persist even after the pandemic passes, and we expect it will particularly benefit firms that support remote working arrangements and eCommerce, two areas where we anticipate accelerating adoption and sustained growth.
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Blog
Jun 11, 2020
Weathering the Storm: Data Shows Consumers Are Holding Up Better Than Expected
According to Daniel Oh, remittance data for asset-backed securities suggests borrowers have embraced Covid-19 assistance programs, mitigating the initial impact of the downturn. However, if the recovery is slow he expects delinquencies and charge-offs to increase.
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Video
May 11, 2020
Webinar Replay - A Roadmap for Fixed Income Investing in a Pandemic Economy
If you were unable to join Eddy Vataru when he recapped the fixed income landscape since the 2008 financial crisis and outlined a framework for assessing the risks and opportunities within investment grade bonds in the current market environment, you can watch the replay here.
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Blog
Mar 30, 2020
The Plumbing Clogged, but Do Not Throw Out the Baby With the Bath Water
According to John Sheehan, the recent selloff in Investment Grade fixed income was exacerbated by technical factors. In his view, regulatory changes implemented after the 2008 crisis removed a critical shock absorbing mechanism that caused spreads to spike.
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Blog
Mar 3, 2020
Lesson from Kraft Heinz Downgrade: Bondholders Beware
Kraft Heinz’s recent downgrade demonstrates that bondholders can no longer assume issuers are committed to maintaining their investment grade rating, and investors who are caught off guard will pay the price.
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Blog
Jan 13, 2020
2020 Investment Grade Credit Outlook: Take a Scalpel, Not an Axe
2019 was an exceptional year for investment grade fixed income, but according to John Sheehan, the market is unlikely to repeat itself in 2020. He feels active portfolio management and effective credit selection will drive performance this year.
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Blog
Dec 17, 2019
Negative Rates in the U.S.? We Don’t Think So
Although trillions of dollars of global debt currently “pays” negative yields, according to Eddy Vataru, the size and supply/demand dynamics of the U.S. mortgage market will keep domestic rates positive for the foreseeable future.
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Blog
Oct 11, 2019
When Evaluating Venture-Backed Initial Public Offerings, Patience Is a Virtue
The venture capital industry has created a robust pipeline of new public companies, but in our view discipline is the key to finding the best opportunities.
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Blog
Aug 23, 2019
Aligned Incentives: Our Key to Navigating the Diverse High Yield Market
In our experience, family-owned private firms and small-to-medium sized public companies are most likely to borrow responsibly and prioritize bondholders ahead of other investors.
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Blog
Aug 13, 2019
Investment Grade Credit Report: An Impressive First Half
According to John Sheehan, accommodative Fed policy and favorable market technicals drove the investment grade credit market’s strong start to 2019.
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Blog
Jul 5, 2019
Convertible Bonds: An Underappreciated Source of Alpha
Although most investors ignore the opportunities presented by these flexible fixed income securities, they are an integral component of our strategy.
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Blog
Apr 15, 2019
A Contrarian View: Now Is Still the Time to Invest in Growth
In early November 2018 we published a blog post claiming that the time was right to invest in growth. In this piece, we revisit our analysis and draw the same conclusion.
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Blog
Mar 21, 2019
Don’t Believe the Hype: An Inverted Yield Curve Does Not Guarantee a Recession
Conventional wisdom dictates that recessions occur every time the yield curve inverts, but in our view that is an oversimplification.
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Blog
Mar 14, 2019
A New Paradigm for Stocks: Digital vs. Decline, Not Growth vs. Value
As the influence of technology continues to increase, we believe investors need to reconsider the relevance of both the traditional style matrix and sector classifications.
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Blog
Jan 15, 2019
Not as BBBad as You’ve Heard – Despite Negative Headlines, We Do Not Anticipate a Wave of Downgrades
BBB issuers have received a lot of bad press recently, but John Sheehan believes the perception is worse than the reality and that credit selection is key to finding good risk adjusted returns.
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Blog
Dec 10, 2018
U.S. Consumers Poised to Drive Demand in 2019: Which Companies Can Capitalize?
In his 2019 preview, Jim Callinan explains why he feels retail businesses are the likely engines for growth and shares his views on sectors and firms that should outperform.
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Blog
Nov 5, 2018
A Contrarian View: Now Is the Time to Invest in Growth
With the U.S. economy now in its ninth year of expansion, investors have become wary of growth stocks and their higher multiples. The ongoing market volatility has increased these concerns, but research from Cornerstone Macro suggests that a slowdown in the economy may in fact be favorable for growth companies.
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Blog
Oct 5, 2018
Leveraged Buyouts: Risks May Lurk Beneath the Surface of These Popular Deals
The recent Blackstone->Thomson Reuters acquisition reminded us once again why we need to be extra vigilant when evaluating sponsor backed deals.
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Blog
Oct 2, 2018
The Case for Concentrated Portfolios
When it comes to investing, we have always believed that focus is more important than breadth. In our latest paper, John Osterweis and Jim Callinan discuss the advantages of concentrated portfolios.
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Blog
Sep 5, 2018
Finding Growth in Unexpected Places: Cyclical Industries
Jim Callinan explores three firms from traditionally slow-growing cyclical industries that he believes are building businesses well-positioned to outperform the market.
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Blog
Jul 6, 2018
MedTech Disruptors: Combining Better Patient Outcomes with Direct-to-Consumer Marketing
Jim Callinan discusses how these three innovative MedTech firms are leveraging direct-to-consumer marketing to accelerate growth and disrupt their industry.
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